Singapore’s industrial property market is expected to maintain steady momentum in 2025, supported by resilient demand from logistics operators, advanced manufacturers, and food production companies. According to industry analysts, industrial rents are projected to grow by around 2% next year, while overall prices may rise by 4%, reflecting continued investor confidence despite a more cautious global environment.
Several factors are contributing to the forecasted rental uptrend. Businesses continue to prioritise well-located such as Woodlands, Jurong and Kaki Bukit have high-spec facilities, especially as automation, e-commerce fulfilment, and supply-chain diversification remain long-term trends. Facilities that offer modern layouts, higher floor loading, and enhanced power capacity are drawing stronger interest, helping to stabilise rent growth even in sub-markets facing new supply. At the same time, companies in food manufacturing, cold-chain operations, and precision engineering are expanding or upgrading their production spaces, contributing to healthy pre-leasing activity in upcoming developments.
Prices, meanwhile, are expected to rise at a slightly faster pace than rents. Analysts note that investors are showing a renewed appetite for quality industrial assets, supported by Singapore’s economic stability and limited land availability. Freehold and long-lease properties with strong tenant covenants are attracting competitive bids, especially among private funds and family offices seeking stable long-term yields. The divergence between rental and price growth also suggests confidence in capital appreciation over the medium term.
However, the market is not without challenges. Higher operating costs, global trade uncertainties, and a pipeline of new completions may place some pressure on older assets. Properties with outdated specifications or inefficient layouts may need repositioning or refurbishment to stay competitive. Yet, the overall outlook remains encouraging, as demand drivers appear broad-based and not tied to a single sector.
As Singapore continues strengthening its position as a regional hub for innovation and advanced manufacturing, industrial real estate remains a vital foundation for growth. With rents expected to rise modestly and prices set for a firmer climb in 2025, the sector is poised to remain one of the more resilient pillars of the broader property market.
